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What is Inventory Accuracy?
This refers to how accurately the physical inventory matches the inventory recorded in the warehouse management/inventory system.
How to calculate Inventory Accuracy?
Inventory Accuracy = (Correct Inventory Records / Total Inventory Records) * 100
What is the business impact of Inventory Accuracy?
High inventory accuracy ensures smooth operations, reduces stock-outs and excess inventory, and improves customer satisfaction.
Industry benchmark for Inventory Accuracy
Most businesses aim for an accuracy rate of 97% or higher.
How to improve Inventory Accuracy?
- Implement regular cycle counting.
- Use a robust warehouse management system.
- Train staff on proper inventory management practices.
- Incorporate radio-frequency identification (RFID) systems to improve tracking and reduce human error.
- Implement a real-time location system (RTLS) to track inventory movement and status.
